(Yicai Global) Jan. 26 -- Shares in Yonyou Network Technology climbed by as much as 4.2 percent after the Chinese provider of corporate cloud-computing services and software said that it has completed a CNY5.3 billion (USD838 million) private placement of shares led by a unit of Asia-focused private equity firm Hillhouse Capital Group.

Yonyou Network’s share price [SHA:600588] closed up 0.08 percent at CNY37.83 (USD6) as investors cashed in. Earlier in the day it had reached CNY39.40.

Seventeen investors from both home and abroad bought 166 million newly issued shares priced at CNY31.95 (USD5) each, a 15 percent discount on today’s closing price, the Beijing-based firm said yesterday.

Singapore-based HHLR Management was the biggest investor at CNY1 billion (USD158.2 million), followed by Beijing-based China International Capital Corp. at CNY511 million. Other participants included Singaporean sovereign wealth fund GIC Private and private equity firm Neo-Criterion Capital Singapore. Switzerland’s UBS and US investment banks Morgan Stanley and JPMorgan Chase also took part.

The funds raised will mainly be used to invest in its corporate cloud service platform YonBIP that supports all-round business innovation, the firm said earlier. It will take three years to complete the platform and will take over six years to pay off. The company also plans to use the proceeds to build a research and development center.

Editor: Kim Taylor